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Commodities / commodity company
Saturn Minerals on the way to production
Guest Author: Jrg Schulte
| 02.17.2016, 05:20 | 638 |
An explorer of hundreds just manages to eventually go into production. Saturn Minerals is on the home stretch to promote the first oil cost!
It says in the commodities sector, that it creates about a hundred of Explorer to eventually go into production. (: CA80410K1012 / TSX.V: ISIN SMI) on the home straight, the Canadian company Saturn Minerals Inc. is currently in the last week, the company announced the discovery of oil reservoirs in the northern Williston Basin near the resort Hudson Bay.
The Communication yesterday, the company announced an interim report to the laboratory results. Accordingly, the porosity of the prioritized 3.5 meter thick layer approximately 12 to 16%, which is normal for the limestone in the region. Particularly interesting are the laboratory data for oil saturation. Accordingly, the oil content is on average at least 57%. Thus, the oil saturation is even higher than management's expectations. Overall, the three identified oil layers comprise a thickness of approximately 8 m.
Information on the size of the resource is called is not the company. We assume that one is awaiting the pending laboratory results to the oil quality in API and permeability. Saturn Minerals was in the past often professionally reticent what has obviously made the bottom line for more investor confidence. As many other companies, in the still of learning sector.
Also Saturn has already announced a further hole in the message yesterday and parked the rig in the nearest, Bannock Creek' area in this regard. Once the completion of the successful drilling is carried out, the, Flow' test, which can be described as a test-production begins.
We assume that Saturn Minerals will promote on, Bannock Creek' area per hole approximately 125 to 250 barrels of oil per day. Decisive for profitability is a lower production rate in this context. Currently Saturn Minerals will likely record breaking production costs of around 15 USD / barrel, but also show both currently a margin of around 15 USD / barrel. It quickly becomes clear what role the rise in oil prices would mean for the company. The coming days and weeks will deliver for investors of Saturn Minerals increasingly more clarity about the company's potential. A re-evaluation of the company should be imminent promptly.